FxWirePro: AUD/JPY trades above 200-month MA, outlook bullish
AUD/JPY chart - Trading View
AUD/JPY was trading 6.77% higher on the month and has shown a break above 200 monthly moving average, raising scope for further gains.
The pair has retraced losses of the past five months, has spiked higher after back-to-back Dojis in the previous two months.
A stronger yuan and risk-on mood underpin Aussie, supporting the pair higher. AUD/JPY poised for more upside.
The People’s Bank of China (PBOC) maintained the one-year loan prime rate (LPR) at 3.85% for the 18th month in a row at its October fixing.
Meanwhile, the five-year LPR was also left unchanged at 4.65% in October, inline with market expectations.
Chinese yuan rises in the aftermath. Further, IMF's comments on Evergranda’s risk soothes investor nerves, boosting sentiment.
International Monetary Fund’s China mission Chief and Assistant Director in the Asia and Pacific Department, Hedge Berger said that Evergrande risk to China is contained for now.
Support levels - 84.98 (5-DMA), 84.76 (200-month MA), 83.86 (200H MA)
Resistance levels - 86 (Upper BB), 87, 88.02 (61.8% Fib)
Summary: AUD/JPY trades with a bullish bias. Close above 200-month MA will propel the pair higher. Next major bull target lies at 61.8% Fib at 88.02.